Fund closing marks the launch of a broader private equity investment platform for institutional investors
MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), announced the launch of a private equity fund investment platform for institutional clients in concert with the closing of approximately $1.6 billion in commitments to a new MIM-managed fund-of-funds. The new fund purchased a portfolio of approximately $1.2 billion of private equity and venture capital assets with funded and unfunded commitments totaling $1.2 billion from MetLife affiliates as part of a managed secondary sale transaction anchored by funds managed by HarbourVest Partners L.P., which served as lead investor.
MIM syndicated a portion of the transaction to other unaffiliated institutional clients. Following the closing, MIM intends to deploy approximately $400 million on behalf of the fund on new private equity opportunities.
“This new platform and secondary transaction speak to MetLife’s 30-year track record as a leading private markets investor and MIM’s ability to generate strong results in alternative asset classes,” said Steven Goulart, president of MIM and executive vice president and chief investment officer for MetLife. “This initial transaction provides us the opportunity to demonstrate the strength of our investment capabilities in private equity and venture capital and provide this offering to unaffiliated institutional investors, while also adjusting MetLife’s alternatives exposure.”
The portfolio of assets acquired by the fund consists of nearly 80 high quality private equity and venture capital fund investments diversified globally and across a range of sectors. The sale follows strong returns for the MetLife general account’s private equity portfolio, which held $14.0 billion in private equity assets at the end of 2021.1
“As an active provider of custom liquidity solutions at scale, we are pleased to partner with MIM on this innovative transaction, which also provides HarbourVest exposure to an attractive portfolio of MIM’s private equity assets,” said Mike Pugatch, Managing Director, HarbourVest Partners. “The high quality and diversified nature of the private equity sponsors within the portfolio was a key factor in our decision, and we look forward to our partnership with MIM on this investment going forward.”
MIM’s private equity team consists of 12 professionals and has deployed nearly $18.0 billion of alternative investments on behalf of MetLife between 2007 and 2021. MIM had $669.0 billion in total assets under management as of December 31, 2021. 2
Campbell Lutyens & Co. served as advisor to MetLife for this transaction.
About MetLife Investment Management
MetLife Investment Management, the institutional asset management business of MetLife, Inc. (NYSE: MET), is a global public fixed income, private capital and real estate investment manager providing tailored investment solutions to institutional investors worldwide. MetLife Investment Management provides public and private pension plans, insurance companies, endowments, funds and other institutional clients with a range of bespoke investment and financing solutions that seek to meet a range of long-term investment objectives and risk-adjusted returns over time. MetLife Investment Management has over 150 years of investment experience and, as of December 31, 2021, had $669.0 billion in total assets under management.
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
HarbourVest is an independent, global private markets investment specialist with over 35 years of experience and more than $92 billion in assets under management, as of December 31, 2021. The Firm’s powerful global platform offers clients investment opportunities in private equity, private credit, and infrastructure and real assets through primary fund investments, secondary investments, and direct co-investments, in commingled funds or separately managed accounts. HarbourVest has more than 800 employees, including more than 190 investment professionals across Asia, Europe, and the Americas. This global team has committed more than $49 billion to newly formed funds, completed over $40 billion in secondary purchases, and invested over $27 billion directly in operating companies. Partnering with HarbourVest, clients have access to customized solutions, longstanding relationships, and actionable insights.
The forward-looking statements in this news release, using words such as “going forward,” “intends,” “look forward” and “seek,” are based on assumptions and expectations that involve risks and uncertainties, including the “Risk Factors” MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. MetLife’s future results could differ, and it has no obligation to publicly correct or update any of these statements.
1 As of December 31, 2021, at carrying value.
2 As of December 31, 2021. Total AUM is comprised of all MetLife general account and separate account assets and unaffiliated/third party assets, at estimated fair value, managed by MIM.